Understanding the Reconciliation Recap Report

Updated October 16, 2025 21:17

The Reconciliation Recap Report summarizes your quarterly payroll tax activity, including payments, adjustments, and variances. It helps you confirm that all taxes were processed correctly and explains any refunds or additional collections.

To find the Recap report

Log in to the web app as an Admin.
Go to Payroll › Taxes › Tax Forms.
Select the quarter you want to review.
Click the Recap file to open your report.

How to Read the Recap Report

Each Recap Report lists your total tax liabilities and payments for each agency. The key terms below will help you understand each column in the report:

Heading	Definition
Deposit	You underpaid taxes. Check debited your bank to cover the shortfall.
Refund	You overpaid taxes. Check refunded the full amount.
Credit	An overpayment reduced your final quarterly payment.
Carry	Overpayment that would usually carry forward, but Check typically issues refunds instead.
Fraction	A minimal difference (under $1) that was written off.
Variance	Difference between Liability + Prepaid and Deposits
Tax code	Two-letter state code (or FE for federal)

How to Use the Recap Report

Use this report to confirm that all payroll tax payments and filings match your records.

Review each line to ensure totals align with your payroll summaries.
The report includes a column for "Variance," which shows the difference between the calculated tax liability and the deposits made. If there is an overpayment, it will be categorized as a "Credit" or "Refund" in the report.
Share with your accountant if you notice discrepancies or receive a tax notice.

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